Broadridge uses cookies to give you the best experience of the website. By continuing to browse, you agree to use of Broadridge's cookies. Find out more about cookies and how we use them.

Want to see our global services?

Remember your selection and close this message. Your browser must accept cookies. Broadridge uses cookies to give you the best experience of the website. By continuing to browse, you agree to the use of Broadridge's cookies. View our Privacy & Cookie Policy.

ICJ and Broadridge collaborated to design and execute a blockchain-based proxy voting process for the Japanese market, with a pilot mirroring the reconciliation and vote delivery process using DLT

NEW YORK, N.Y. (USA), January 14, 2019 - Broadridge Financial Solutions, Inc. (NYSE: BR), an S&P 500 company and global Fintech leader, and ICJ Inc., a joint venture of Broadridge and the Tokyo Stock Exchange, Inc. (TSE), have successfully conducted the first Proof of Concept (PoC) of blockchain-based proxy voting in Japan, using Quorum as the underlying distributed ledger technology (DLT).

Developed specifically for the Japanese proxy market, the DLT-based solution mirrored the proxy voting processes which included unique file transfer protocols on the ICJ electronic voting platform. Blockchain is ideally suited to streamline and automate complex reconciliation processes amongst numerous players in the chain of custody which exist in the Japanese proxy market.

“The successful completion of the Japan market DLT-based voting platform PoC builds on our investment in leading-edge technology solutions in the investor communications space,” said Patricia Rosch, President of Investor Communication Solutions, International at Broadridge. “The Japan project validated our view on how an interoperable blockchain platform can play a central role in raising corporate governance by creating end-to-end vote transparency and driving operational efficiency in light of the unique processing requirements in Japan.”

Shigeo Imakiire, President, ICJ Inc., said “The PoC is a first step to deploy and utilize this new technology, and we will continue to pursue a path in enhancing the efficiency and transparency of the voting process in Japan, which involves a variety of domestic and global market players.”

The validation was performed in a test environment in which the role of local custodians, global custodians, the central securities depositary, and local transfer agents was simulated. The final positions of these organizations were loaded on the ledger and reconciliation was performed using smart contracts. The result demonstrates that if position management is performed on a ledger for the purposes of proxy voting, the ledger could also be used as the single source of truth for subsequent data reference needs, resulting in the reduction or elimination of complex reconciliation processes. ICJ and Broadridge concluded the project in November 2018.

ICJ and Broadridge are committed to drive the innovation roadmap and develop solutions that allow clients to get ahead of today’s challenges and capitalize on tomorrow’s opportunities. The Japan proxy project is a further development of ICJ’s strategy to deploy leading technologies, including blockchain, and to focus on co-innovating with partners in specific areas where there is deep understanding of technology and operations processes.

Broadridge Financial Solutions, Inc. (NYSE: BR), a $4 billion global Fintech leader and a part of the S&P 500® Index, is a leading provider of investor communications and technology-driven solutions to banks, broker-dealers, asset and wealth managers and corporate issuers. With over 50 years of experience, including more than 10 years as an independent public company, Broadridge provides an important infrastructure that powers the financial services industry.Broadridge's infrastructure underpins proxy voting services for over 50 percent of public companies and mutual funds globally, and processes on average more than U.S. $7 trillion in fixed income and equity trades per day of securities. Broadridge employs over 11,000 full-time associates in 18 countries.

Broadridge, a global Fintech leader with over $4 billion in revenues, helps clients get ahead of today’s challenges to capitalize on what’s next with communications, technology, data and analytics solutions that help transform their businesses.